News & Commentary

The U.S. benchmark 10-year treasury closed just under the highest level seen in four years, causing the Dow, S&P and Nasdaq to drop. Brian Battle of Performance Trust commented on the volatility and what it means for certain securities.

The U.S. Federal Reserve announced today the plan to keep interest rates unchanged while also anticipating a rise in inflation. Brian Battle of Performance Trust commented on the news and the hawkish tone that the Fed displayed in the meeting minutes.

The market is now seeing rising bond yields compete with some of the biggest stock dividends, shifting the tone for investors. Andrew Pace of Performance Trust commented on the rise in yields and the opportunities investors see in fixed-income.

Chicago’s new bond deal went through more hurdles than expected during the corporation’s second issuance. Brian Battle of Performance Trust commented on the market’s reaction to the new issuance and the initial hesitation towards the new structure.

The yield for the 2-year Treasury note hit a milestone as it crossed above the 2% mark for the first time since 2008. Andrew Pace of Performance Trust commented on the benchmark yield and the lure it has for investors in this lower rate environment.

Chicago’s Sales Tax Securitization Corp. bonds return to the market on Wednesday and are looking for a welcome reception after its December debut. Brian Battle of Performance Trust comments on the bonds and the expectations that the market has on the group.

Wall Street hit record highs on Thursday as Oil bolstered the energy sectors and investors prepared for strong earnings reports. Brian Battle of Performance Trust commented on the outlook as Fed President William Dudley warned of the growth that may occur due to tax cuts.

Wall Street’s major indexes hit record highs on Friday as the tax bill made its way through Congress and looked like it would pass. Brian Battle of Performance Trust Capital Partners commented on the progress of the bill and the outlook on the final product. He also touched on the reactions we may see from the markets as they’ve prepared for a new policy.

Chicago is nearing approval from the City Council on its new securitization bonds. As they await potential approval on Mayor Emanuel’s ordinance to establish a special entity corporation, Performance Trust’s Brian Battle comments on the opportunity these bonds would represent for investors.

Amazon led the way in corporate bond issuance in the month of August, adding $16 billion to a total of $86 billion that month. Our very own Andrew Pace commented on the news, the current rate environment, and what it means for issuers and investors.

Illinois will move forward with general obligation (GO) borrowing to chip away at the state’s $15 billion backlog of delinquent bills. Brian Battle commented on the authorization of $6 billion in GO borrowing for fiscal year 2018. He also talked about where there might be interest in the market given the current circumstances of the state.

U.S. stocks erased the advance from earlier in the week, falling Thursday morning and extending the recent decline as traders await news out of Jackson Hole, WY. Brian Battle of Performance Trust commented on the visible anticipation of the meeting of central bankers and the importance of the news that comes out of the meetings.

Current affairs in Illinois have spurred mixed feelings with investors. Brian Battle of Performance Trust comments on the sentiment from Chicago’s Annual Investor Conference and where concern is stemming from. He also talks about what’s ahead for Chicago and Illinois.

Investors aren’t giving up on the best-performing Treasurys, a sign some believe the recent selloff could be short-lived. With falling bond prices, the yield on the benchmark 10-year note hit its highest since early May after reaching its year low on June 26th. Andrew Pace of Performance Trust commented on the current sentiment toward the market trends given the challenges Congress has faced to pass legislation.

The Chicago Public Schools (CPS) doubled the size of its planned $250 million unrated general obligation bond deal Monday. With high yield buyers attracted by the rates and added security feature of the bonds, the school board authorized up to $500 million. Brian Battle commented on the news and the effects of the Illinois budget deal.

A year ago Saturday, the benchmark 10-year Treasury note yield hit a record low, settling at 1.366% on July 8, 2016. While many at that time expected yields would continue to fall, yields have contradicted those expectations by bouncing back one year later. Andrew Pace of Performance Trust commented on the trend and the variables at play during the remainder of the year.

Investors around the world reacted to news from the Eurozone, spurring a bond sell-off and anxiety toward central bank policy. U.S. Treasury bond yields closed at their highest levels since May 11. Andrew Pace of Performance Trust commented on the change in tune from the ECB and the visible trends from traders.

Illinois lawmakers were rewarded on Wednesday as they took a step closer to finalizing a budget package. With the potential for a downgrade looming, Illinois government passed one hurdle, leading to spreads for Illinois obligations to tighten. Brian Battle of Performance Trust commented on the speculation in the market as lawmakers continue to meet.

U.S. Government bond yields fell in the first half of the year and startled investors along the way. Brian Battle commented on current market sentiment and what might be necessary to shift the momentum of the market.

Stocks and bonds have recently been quiet. However, the expectations for volatility are increasing, as seen from today’s Bank of America Merrill Lynch MOVE Index number–the lowest reading since its record lows set in 2013. Andrew Pace comments on the potential pitfalls investors might face if they take excessive risks now.

Under the terms of a new deal with JPMorgan, Chicago Public Schools will pay approximately $70,000 a day in interest on two new expensive loans they received on Monday. Brian Battle of performance Trust commented on the deal and the reasoning of the high interest rate for the loans.

Signs of tepid U.S. business spending added to concerns and led to long-term U.S. government bond yields closing at 2017 lows on Monday. Andrew Pace of Performance Trust commented on the concerns, investor complacency, and investor risk in the market.

Lawmakers met Saturday for a special legislative session as Illinois is on track to become the first state to have its credit ranking downgraded to junk status. Brian Battle commented on the alarming nature of the news, the discussions, and the potential costs for Illinois residents.

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In order to close its private placement of short-term state grant anticipation notes, Chicago Public Schools paid a punishing yield. Monday’s transaction will allow the district to meet its teachers’ pension payment obligations for the month of June. Brian Battle of Performance Trust shared his insight into the lending rate of the deal, and the factors that led to this deal.

On Monday, Chicago Public Schools (CPS) closed an expensive deal to borrow cash which is needed to scrape through June and to pay out teacher pensions. Officials purchased $275 million in “grant anticipation notes,” a short-term loan, from JPMorgan. Brian Battle commented on the news and the relationship between CPS and JPMorgan.

Investors reacted as Illinois spreads widened after Thursday’s two downgrades. Investor confidence is waning as the state now has two ratings at the lowest investment grade level. Brian Battle commented on the news of the lowest rated bonds in the 44-year history of bond ratings for Illinois.

Illinois is close to becoming the first state with a junk bond rating after two downgrades on Thursday. Illinois continues to reach historic lows in agency ratings for states as political turmoil continues at the state capital. Brian Battle comments on the downgrade and the signal being sent to Illinois’s government.

U.S. Government bonds strengthened after the holiday weekend and latest inflation report. With the recent report, investors expect the Fed will be slow in raising interest rates. Andrew Pace comments on inflation numbers, investor sentiment in the market, and the current behavior of yields.

U.S. government bonds pulled back on Thursday after the biggest rally of the year the previous day. Upbeat labor market and manufacturing data deflated concerns of the growth outlook, offsetting political uncertainty. Andrew Pace of Performance Trust commented on the market trends through this political climate and investors’ expectations compared to the reality.

As rates have quickly risen in the market, fewer debt borrowers have taken advantage of the “call” provisions in some debt. Andrew Pace commented on the trend as the government called just $6.8 billion in debt in the first quarter of 2017, marking the lowest number since the April-to-June period of 2006.

As Puerto Rico filed its Title III petition for bankruptcy relief, talk turned to Illinois and its likelihood of seeking a court-supervised forum. Illinois continues to grow its mounting debt as the state nears its’ second year without a budget. Brian Battle commented on the current affairs in the state and the likelihood of Illinois following Puerto Rico.

The U.S. job growth rebounded in April and the unemployment percentage dropped to mark a near 10-year low. Brian Battle commented on the news and the overall expectations, as well as the outlook going forward.

U.S Government bond prices gained ground ahead of the presidential election in France. Andrew Pace of Performance Trust shared his thoughts with the Wall Street Journal, commenting on the market’s anticipation ahead of the election, and the trends Performance Trust is seeing in bond prices and yields.

U.S Stocks take a dramatic turn on Wednesday as meeting minutes from the Federal Reserve reveal a possible change in investment policy later in the year. The news reversed a strong rally that took place after a strong jobs report earlier in the day. Performance Trust’s Director of Trading, Brian Battle, comments on the news and cause of the market selloff.

The Federal Reserve has been purchasing fewer mortgage bonds in the last few months, which might shape Fed officials’ thinking as they consider shrinking their giant bond portfolio. Performance Trust’s Andrew Pace comments on this news and trends.

House Republicans pulled the American Health Care Act bill, their new healthcare-overhaul legislation, on Friday due to a shortage of votes within Congress. Brian Battle of Performance Trust comments on the news and the meaning of this move.

Treasury yields rise and Wall Street rallies, lifting the Dow above 21,000 for the first time ever as investors expect an interest rate hike in the future. Brian Battle of Performance Trust comments on the rally and the overall market sentiment that is leading the market in the current direction.

Federal Reserve officials are trying to determine how to unwind trillions of dollars on their balance sheet. As the Fed looks for answers, homeowners may be the group currently holding them. Performance Trust’s Andrew Pace shares his insight and analysis of this matter, and comments on the current market outlook.

The Dow Jones Industrial Average reached a new all-time high, trading above 20,000 for the first time on Wednesday, resuming a rally that began after the election of Donald Trump. The rally continued after Trump signed a number of executive orders the day before. Brian Battle of Performance Trust comments on Trump’s actions and the overall reaction of the market, as well as what action we may see in the upcoming weeks.

Chicago reaches a new peak in spread penalties in the primary market when it priced a general obligation sale this Thursday. Brian Battle of Performance Trust shares his insight on this news and what it may mean.

NASDAQ loses ground on Wednesday as investors flee drug stocks after President-elect Donald Trump blasts high drug prices. Brian Battle of Performance Trust comments on Trump’s comments and the volatile shifts in the markets that we might see during a Trump presidency.

Chicago is promoting its budget and pension fund gains ahead of a $1.6 billion general obligation sale. This comes as the city’s fiscal pressures loom and the state struggles with overall dysfunction. Brian Battle of Performance Trust comments on the news as well as the City and State’s positions at this time.

There is a rout in the bond market due to the rise in yield on the 10-year Treasury note, which has caused prices to drop. Performance Trust’s Andrew Pace comments on the rise and how duration is causing the rout to be more painful for investors than it would have been 30 years ago.

Investors purchase Chicago Public Schools’ A rated capital improvement tax bonds. The reaction drove the group to release a greater size than anticipated, showing the strong demand and positive sentiment to the initial release and ratings. Brian Battle comments on the market reaction to the bond sale, sharing his insight on the deal and overall reaction with Bond Buyer.

Chicago Public Schools was able to sell $729 million in bonds, which will be used to fund capital spending (i.e., overcrowding relief, school modernization, and critical repairs). However, this does not solve the issue of the $215 million that the district still needs to come up with for pension costs. Performance Trust muni strategist Brian Battle comments on the recent sale and why it does not solve the district’s long-term problems.

Chicago Public Schools is preparing to release an inaugural sale of bonds and has received legal opinions endorsing the deal. Brian Battle shares his insight into the new Chicago Schools bond issuance and its rating, touching on the structure of the bonds and how they received an A rating. Brian mentions the ratings and how they benefit in terms of the market access that is received.

US stocks jump and bond prices climb as investors prepare for European Central Bank (ECB) announcement. Market reaction is a sign of preparation for the unknown. Industry specialists comment on the possible outcomes from the ECB announcement. Brian Battle of Performance Trust comments on the impending announcement and the bond market trends and potential reaction.

Wall Street surges, continuing its rally since the U.S. Presidential Election. Industry leaders comment on the growth and the current trends, including the rally in bond prices. Brian Battle of Performance Trust comments on the current rally and what it means for other areas of the market.

Brian Battle shares his insight into current market trends. Wednesday saw a significant surge with the Dow hitting record intraday highs as the market continues its gains since the presidential election. Brian touches on the bond market rally, which has seen some significant movement over the past few weeks. Within the bond market, the greatest change has been seen in the long end of the market as investors are focusing on high-dividend stocks.

The research and other information provided herein has been prepared for informational purposes only and is not an offer or solicitation to purchase or sell securities. Performance Trust Capital Partners ("Performance Trust") may make a market, or have a position in the securities discussed herein and may purchase or sell the same on a principal basis or as an agent. Investing involves risks, including the potential for principal loss. There is no guarantee that the strategies and services will be successful or outperform other strategies and services. Investing in bonds includes assumption of risks, including rising interest rates to decrease the value of bonds. Certain assumptions may have been made in connection with the analysis presented herein, and changes to the assumptions may have a material impact on the analysis or results. Past performance is no guarantee of future results. The investments discussed herein may be unsuitable for investors depending on their specific investment objectives and financial position. Investors should independently evaluate each investment discussed in the context of their own objectives, risk profile and circumstances. With respect to the information contained herein that has been obtained from public sources, while Performance Trust believes this information to be reliable, Performance Trust does not guarantee its accuracy, adequacy or completeness and is not responsible for any errors or omissions or for the results obtained from the use of such information. Performance Trust is not a chartered bank or trust company, or depository institution. It is not authorized to accept deposits or trust accounts and is not licensed or regulated by any state or federal banking authority.